Axis Bank Receives 'Buy' Rating from MarketsMOJO for Strong Lending Practices and Impressive Financial Performance

Axis Bank, one of the leading private banks in India, has recently received a 'Buy' rating from MarketsMOJO. This upgrade comes as a result of the bank's strong lending practices and impressive financial performance.
One of the key factors contributing to the 'Buy' rating is the bank's low Gross NPA ratio of 1.58%. This indicates that the bank has been able to maintain a healthy loan portfolio with minimal non-performing assets. Additionally, the bank has shown strong long-term fundamental strength with a CAGR growth of 86.86% in net profits.

In the last three consecutive quarters, Axis Bank has declared positive results, with its Gross NPA being the lowest at 1.58% and its Net Interest Income being the highest at Rs 12,532.15 crore. This showcases the bank's consistent growth and profitability.

From a technical standpoint, the stock is currently in a mildly bullish range and its MACD and Bollinger Band indicators are also showing a bullish trend. With a ROA of 1.6, the stock is attractively valued with a price to book value of 2.3. However, it is trading at a premium compared to its historical valuations.

It is worth noting that Axis Bank has outperformed the market in terms of returns in the past year, generating a return of 22.93%. However, its profits have only risen by 15.3%, resulting in a PEG ratio of 1. This indicates that the stock may be slightly overvalued.

On the other hand, the bank has high institutional holdings at 83.51%, which shows that these investors have better resources and capabilities to analyze the company's fundamentals. Their stake in the bank has also increased by 1.49% in the previous quarter, indicating their confidence in the bank's future prospects.

While Axis Bank has its strengths, it is important to consider the risks as well. The stock has underperformed the market in the past year, with a return of 22.93% compared to the market's return of 40.59%. This could be a cause for concern for some investors.

In conclusion, Axis Bank's 'Buy' rating from MarketsMOJO is a testament to its strong lending practices and impressive financial performance. However, investors should also consider the risks and make an informed decision before investing in the stock.